Myriad Genetics (MYGN – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Tycho Peterson from Jefferies maintained a Sell rating on the stock and has a $11.00 price target.
Tycho Peterson’s rating is based on a combination of factors that contribute to a cautious outlook for Myriad Genetics. The recent transition in the CEO position adds a layer of uncertainty, as the company adjusts to new leadership. This change, coupled with tempered long-range growth projections, suggests potential challenges ahead. The anticipated revenue growth has been revised downward, reflecting ongoing headwinds from GeneSight, despite management’s efforts to mitigate these through cost reductions.
Additionally, while recent financial results showed some positive aspects, such as increased gross margins, the overall operational margin declined slightly. The guidance for 2025 indicates a modest revenue increase, but with expected margin deterioration and a significant rise in R&D expenses. These elements, combined with a lower-than-expected revenue forecast for the upcoming quarter, contribute to the Sell rating, as they highlight potential risks and uncertainties in Myriad Genetics’ future performance.
In another report released today, J.P. Morgan also maintained a Sell rating on the stock with a $12.00 price target.